And finally.... the closing bell of Wall Street has just been rung, ending a positive day on the markets.

The Dow was up 1% at the close, up 242 point, meaning it has posted a three-day winning streak.

The close of Wall Street today Photograph: Bloomberg TV

That follows a strong session on the other side of the Atlantic:

European markets at the close of trading Photograph: Bloomberg TV

Commodity prices have also recovered some ground; soybeans are up 1.5% today while corn gained 2.3%.

That may show that the soothing words from US officials, such as Larry Kudlow, is working. Or we might be reading too much into it! Pinning a narrative on the market action is tempting, but not always accurate....

We’ll be back tomorrow to track whether the recovery continues, or stumbles. Goodnight! GW

Beijing signalled it was willing to escalate its fight with Donald Trump over his plan for anti-China tariffs on Thursday by launching a legal challenge against Washington’s newly proposed duties on more than 1,300 Chinese products.

The Chinese move to open a World Trade Organization case came despite efforts by White House officials to ease fears of a looming trade war and is likely to feed doubts over the ability of the world’s two largest economies to reach an amicable settlement.

Beijing said the US’s proposed tariffs, unveiled earlier this week, represented a “serious violation” of global trading rules because they discriminated against Chinese goods and violated the tariff limits Washington had made commitments to....

Investors don’t seem too alarmed, though; the Dow is up almost 1% still, with the S&P 500 0.6% higher in late trading.

Larry Kudlow has certainly hit the ground running, since joining the White House as National Economic Council Director.

During his tour of media outlets, the former Reagan adviser even told Fox that US growth could hit the heady heights of 5%.

CNBC has the details:

Asked whether the economy could post 5 percent annual GDP as it recovers from the financial recession, Kudlow said “we could.”

“Will we get 5 percent forever? No. But there’s a catch up here,” Kudlow told Fox Business Network. “Any economist will show you the long-term trend line for GDP versus the actual now: We’re like several trillion dollars below where we should be based on the long-term trend lines. I want to get back to that full potential.”

Frankly, that seems awfully ambitious. And if the US economy did rattle along at such a heady pace, the Federal Reserve would surely raise interest rates promptly for fear of inflation surging. Time will tell....

Here are the details of how the European markets surged to a three-week high tonight:

UK’s FTSE 100: up 165 points at 7,199.50, a gain of 2.35%

Germany’s DAX: up 347 points at 12,305, a gain of 29%

France’s CAC 40: up 134 points at 5,276.6, a gain of 2.6%

Italy’s FTSE MIB: up 526 points at 22,969, a gain of 2.35%

Fiona Cincotta of City Index says a relief rally swept the markets today:

Markets across the globe continued to bounce back as optimism increases that the US and China are willing to work towards avoiding an all-out trade war.

The FTSE was led 169 point higher by tech stocks and the heavyweight commodity sector; the miners gaining support from higher metal prices, on hopes that China, the world’s largest consumer of metals won’t be entering a trade war with the world’s largest economy.

Jasper Lawler of London Capital Group says buyers came back with a vengeance on Thursday.

It was a complete one-eighty from Wednesday’s rout. The bounce-back attributed to White House economic advisor Larry Kudlow easing trade war fears has gained some traction. The DAX index hit a 2-week high while the FTSE 100 reached its highest in 3-weeks. In this volatile environment, there is still scope to blind-sided again by the next official comment or Tweet about US-China trade negotiations.

Just in: Larry Kudlow, the president’s chief economic advisor, has played down the risks of a trade war.

Speaking to reporters outside the White House, Kudlow argues that the spat with China could have a happy ending - if it forces Beijing to play fairly.

Mark Knoller (@markknoller)

To those fearing US-China trade war, new WH economic advisor Larry Kudlow reminds that no new tariffs enacted yet. Says they're just proposals. "There's nothing around the corner." Says US tariffs posted for comment "for a couple of months." pic.twitter.com/aiMRwYxONQ

In exchange with reporters in WH driveway, Kudlow says US objective with China is economic growth: "If you tear down barriers and play by the rules, both sides should benefit." Kudlow says Pres "the first guy in decades to show some backbone on the issue." pic.twitter.com/YfGwJydavg